Publications

    Norgaard, Stefan, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian. 2020. “In the Green: Negotiating Rail Expansion in Somerville, MA”. Read full the case study Abstract

    Stegan Norgaard, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian; May 2020

    Successful litigation against the Commonwealth of Massachusetts made an original, legal, and moral case for building alternative transportation in Somerville: the Green Line Extension (GLX). Having campaigned on extending the Green Line—first as alderman, then as mayor—Joe Curtatone took office as mayor in 2005. His first victory was creating a MBTA “T” stop for the Orange Line at Assembly Station. Working with the same coalition of nonprofits, he pursued a participatory visioning process (“SomerVision”) that brought together over sixty organizations from different sectors in Somerville, that had a common vision for the GLX. Curtatone overcame hiccups surrounding industrial parcels and successfully kept the project eligible for a federal NewStarts grant; using an economic-development narrative, he acquired the problematic parcels through eminent domain. By 2014-2015, though, the project was running over budget and it was uncertain whether the Commonwealth would support the GLX.

    Curtatone negotiated with the State of Massachusetts and agreed on simplifications to the original GLX, including a shorter route that would no longer directly benefit neighboring regional communities. He also negotiated project funding by the Cities of Cambridge and Somerville and the Boston Regional Metropolitan Planning Organization board (BRMPO). But then, the Commonwealth announced a shortfall of roughly $200 million, that Curtatone resolved through an agreement: Somerville paid $50M, Cambridge $25M, and the BRMPO diverted funding for the rest. The narrower GLX project was approved and construction began in May 2018. This case is designed as the capstone case in a series of negotiation cases developed by the Bloomberg Harvard City Leadership Initiative. 

    Thanks to a gift from Bloomberg Philanthropies, no permission is required to teach with, download, or make copies of this case.

    Vo, Hung, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian. 2020. “Many Ways to Get There: Securing Public Investments in Richmond, VA”. Read the full case study Abstract

    Hung Vo, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian; May 2020 

    The City of Richmond elected Levar Stoney as its youngest mayor in 2016. Mayor Stoney campaigned for better-funded public schools, government accountability, and crime prevention. One of the mayor’s main responsibilities was to propose biannual budgets to a nine-member city council, which could approve the budget as proposed or pass it with amendments. This case illustrates Stoney’s efforts to increase Richmond’s real estate tax from $1.20 to $1.29 per $100 of assessed value. This tax increase was quickly rejected by a majority of city council members. Disagreements climaxed when the mayor’s administration walked out of a city council budget hearing, prompting council members to respond by voting to pursue legal action against Stoney.

    This case focuses on how positional bargaining prevents creative deal-making when negotiators fail to understand the interests of other parties. By exploring Stoney’s relationship with city council, the case emphasizes the downsides of positional bargaining and the opportunities for better outcomes with an interest-based approach to negotiation. This case also introduces the four negotiation concepts of interests, options, criteria, and alternatives, and examines their relevance to city-level negotiations.

    Thanks to a gift from Bloomberg Philanthropies, no permission is required to teach with, download, or make copies of this case.

    Norgaard, Stefan, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian. 2020. “In the Weeds: Securing a Grass-Mowing Contract in Stockton, CA”. Read the full case study Abstract

    Stegan Norgaard, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian; May 2020

    Kurt Wilson, the City Manager of Stockton, CA, joined the city government ten months after the City declared bankruptcy. After successfully steering Stockton out of bankruptcy, Wilson committed to implementing a set of permanent financial control measures to ensure that the City remained fiscally solvent well into the future. He had an extensive background in both the private and nonprofit sectors and had served as city manager in four other California cities.

    Stockton’s Long-Range Financial Plan (L-RFP) indicated that the City could spend, at most, approximately $1.3M in 2019 fiscal year (FY19) on a contract to mow grass on city medians. The City had spent $1.2M the previous year. Wilson believed shortages of tradespeople in the Bay Area—caused in part by demand for construction after California wildfires—would affect price points. At worst, he thought he could justify spending $1.6M on the contract. Wilson cared about the fiscal health of Stockton, but he also wanted to ensure high-quality public services.

    When the City issued its RFP, bids started at $2.26M, well above what Stockton could afford. After considering his options, Wilson issued a new RFP that included a lower “base” scope of services with modular components that the City could accept or decline depending on cost. Stockton ended up spending $1.91M for a year of service, but even as costs increased, tall grasses remained on city medians. Wilson wondered whether there might have been a better way for the City to have anticipated the higher prices.

    Thanks to a gift from Bloomberg Philanthropies, no permission is required to teach with, download, or make copies of this case.

    Norgaard, Stefan, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian. 2020. “You Get What You Pay for: Reforming Procurement in Naperville, Illinois”. Read the full case study Abstract

    Stegan Norgaard, Elizabeth Patton, Monica Giannone, Brian Mandell, Jorrit de Jong, and Guhan Subramanian; May 2020

    Naperville, Illinois is a suburb of approximately 150,000 people in the Chicago metropolitan area. Traditionally, the City focused on price for all procurement negotiations, but it often had few vendors applying for key contracts and struggled to negotiate on both price and quality.

    Naperville’s original procurement process was called Quality-Adjusted Cost (QAC). This process sought to simplify a myriad of concerns and variables (including price, quality, timeline, and scope, among others) into a single metric, so that the City could easily and objectively evaluate bids. Although QAC attempted to incorporate quality into the evaluation, there were instances when it seemed the best vendor was not selected.

    In an effort to improve the quality of City services, Naperville adopted a new procurement approach called “Cost as a Component.” This revamped process allowed the City to negotiate with vendors on more than just price for technology upgrades and aimed to ensure long-term partnerships with relevant firms, creating value for both vendors and the City. This case illustrates the trade-offs between QAC and “Cost as a Component” for Naperville and prompts participants to apply negotiation concepts to the broader process of city procurement.

    Thanks to a gift from Bloomberg Philanthropies, no permission is required to teach with, download, or make copies of this case.